ASHENAFI WEGAYEHU TEKLE (GFG PLASITIC FACTORY)

STATEMENT OF MANAGIMENTS’ RESPONISIBILITES

To comercial code of ethiopia 1960 requires the company ‘s management to prepare

financial statement for each financial year which give atrue and fair view of the state of
affaires of the company as at the end of the financial year and of the operating results of the
company for the year. It also requires the management to ensure that the company keeps
proper accouniting records which disclose with reasonabel for safeguarding the assets of
the company.
Management are responsibel for the preparation of financial statement s that give atrue and
fair view in accordance with the generally acceoted accounting principle (gaaps) and in the
manner required by the commercial code of ethiopia 1960 and for such internal control as
the management determine are necessary to enabel the preparation of financial statements
that are free from material misstatement , whether due to freud or error.
Management accepts responsibilites for the annual financial statement , which have been
prepared using apperopirat accouniting police s supported by resonabel and prudant
judgments and estimates, in conformity with the generally acceptable accounting standards
(gaap)and in the manner requireds by the commercial cod of ethiopia 1960. Management is
of the opining that the financial statements give atrue and fair of the statement of financial
affairs of the company and of its operating resulit, management furither accept
responisibelity for the maintenance of accouniting records which may be relied upon in the
preparation of financal stsements, as well as adequate systems of internal financial control.
The management also accepts responsibilities for

i)Desiging, implementing and maintaining such internal conitrol as they determine

nesssary to inabel the presentation of financial statements that are free from material
mosstatment ,wether due to fraud or error,

ii) selecting sutabel accouting policies and applying them consistentiy, and

iii) making accounting estimates and judgments that are resonabel in the circumstances.

The management acknowledges that the indipandant audit of the financial statement does
not relieve them of their responsibilites.

the management certifies that ,to the bast of thir knowlge, the information furnished to the
auditors for the purpose of the audit was correct and is in accurate presentation of the
company;s financial trasaction.
ASHENAFI WEGAYEHU TEKLE (GFG PLASITIC FACTORY
NOTES TO THE FINANCING STATEMENT
1 ESTABLISHMENT
The company is soleproprietorship business that was established in miaziya 2012 E.C. by
obtaining its business License from dire dawa administration
Ite main objectives are,
a)to engege in wholesales and retail trade of various items
2 ACCOUNTING POLICIES
Statement of compliance
The financial stsements have been prepared in accordiance with the company reporiting
framework.
For the purpose of reporting under the commercial code of ethiopia , the balance sheet in
these financial statement is represented by the statement of financial position and the
profit and loss account is presented in the statement of profit or loss account is presented in
The statement is represented by the statement of financial position and the profit and loss
account is presented in the statement of profit or loss.
Basis of preparation
The financal statements are prepared under the historical cost basis of accounting . the
preparation of financial conformity with the company reporiting framwork requires the use
of certain critical accounting estimates. It alsorequires management to exercise judgment in
the process of applying the company ,s accouniting policies areas involving ahigher deggree
of judgment or complexity, or areas where assumptions and estimations are significant to
the financial statement s are disclosed in note 3.
Revenue recognition
Revenue comprises the fair valu of the consideration recived or receivabel for the sale of
goods or providing service on the oridinary course of the company . revenue in shows net of
value- added tax,returns,rebates and discounts.
The company recoginaizes revenue when the amount of revenue can be reliabel measured,
it is probabele that future economic benefits will flow to the company and when specific
criteria have been met for each of the company ;s activites as described below.
Revenu is recoginazed as follows;
I sale of goods
Sale of goods are recoginize in the period in which the company has deliverdy does note
occur unitl the prduct have been accepted by the customer.
ii other incom
All other incom is recognised on the accrual basis on the servies provid
ASHENAFI WEGAYEHU TEKLE (GFG PLASITIC FACTORY
NOTES TO THE FINANCING STATEMENT (continued)

2 ACCOUNTING POLICIE (continued)

Propety plan and equipment
Propety,plan and equipment are stated at cost loss accumulated depreciation and any
accumulated impirment losses. Depreciation is charged in accordance with incom tax
proclamation 286/2002, on the straight –line basis eor buildings and on the written down
value for other assets, at the following rates per annum.
%
Buildings 5
Computer and accessoies 20
Other plant and equipment 15
Leasehold land
Leasehold land is peresnted separatly on the face of the balance sheet and is stated at cost
less accumulated amortization. The costs are amortized over the period of the leases.
Cash and cash equivalents
Cash and cash on equivalents compreise cash in hand , cash at bank in current and deposit
acounts and short term,
Highly liquid investments with maturity periods of three mothes or loss. cash and cash
equivalents are carried at thir nominal vaiues,
Trad and other receivabel
Receviabels arise in tke normal course of business and do not bear interst. At the end of
each reporiting period, the carrying amounts of trad and other recivabels are reviewed to
determine whether there is any objective evidance that the amounts are not recoverabel,if
tso,an impairment loss is recogized immediately through profit or loss.
Trad and other payabels
Trad payabels are obligitions on the basis of normal credit terms and do not bear
interst.trad payabels are carried at their nominal values
Taxation
Current taxation is provided on the basis of the results for the year as show in the financial
statement adjusted in accordance with the ethiopia tax legislation. The tax liability is
calaulated on the taxabel profit at currently enacted tax rates.
Provisions
Provisions are recogonised when the campany has apresent legal or conistracive obiligation
as a result of past events it is probable that an out flow of resources emboding economic
benifits will be required to settle the obligaton , and areliable estimat of the amount can be
made.
Comparative
Where necessary, comparative figures have been adijested to conform to changes in
presentateion in the correct year.
G.F.G PLASTIC FACTORY
FINANICAL POSITION
FOR THE YEAR ENDED 7 JULY 2023

ASSETS Notes 2023

ETB
NON-CURRENT ASSETS

Property, plant and equipment 5 28,500,181

28,500,181
CURRENT ASSETS

Inventories 6 6,755,531
Account recivable 7 5,799,274
Cash on hand and at bank 3,807,332
16,362,137
TOTAL ASSETS 44,842,318

EQUITY AND LIABILITES

CAPITAL AND RESERVES

capital 12,750,000.00
Accumulated profit & loss 7,879,938.00
20,629,938.00
NON CURRENT LIABILITY

loan (long- term) 4,015,600.00

Current maturity of long term loan 11,426,965.00
15,442,565.00
CURRENT LIABILITY

Profit tax payable 1,027,818.00

Bank OD 10,741,997.00

Total liability 23,196,780.00

TOTAL EQUITY AND LIABILITIES 44,030,436.00
ASHENAFI WEGAYEHU TEKLE ( G.F.G PLASTIC FACTORY)
STATMENTS OF CHANGES EQUITY
FOR THE YEAR ENDED 2023
COST OF SALES 2023
ETB
Opining balance 5,240,919
Purchase during the year 66,667,489
Available 71,908,408
Ending inventory 9,755,531
- 62,152,877
GENERAL & ADMINISTRATIVE EXPENSES
Salary & wage Expense 5,540,510
Advertizing Expense 7,010
Telephone & Internet Expense 21,698
Printing & stationary Expense 244,488
factory buliding rent Expense 80,000
Repaire & mentenance Machinery 41,712
Employee Pension 316,123
Stamp Duty 178,664
Hotel Service Expense 29,862
Electice & Water Expense 4,961,308
Feul & Lubricant 381,866
Cleaning & sanitation Expense 11,866
Depercation Expanse 4,484,060
Sundery 2,487
16,301,653
PROPERTY,PLANT,& EQUIPMENT
Other Asset 538,112
Plant Machineries 36,244,735
Office furniture & equipment 301,877
Power Transformer 2,525,000
39,609,724
DEPERCIATION
Other asset 269,056
Plant Machineries 10,044,128
Office furniture & equipemnet 86,359
Power Transformer 710,000
11,109,543
NET BOOK VALUE 28,500,181
Inventories Finished Goods 9,755,531
Inventories Raw Materials ---
9,755,531
ASHENAFI WEGAYEHU TEKLE ( G.F.G PLASTIC FACTORY)
NOTES TO THE STATMENTS
FOR THE YEAR ENDED 2024
Notes 2023

ETB

REVENUE 104,861,200

COST OF SALE (76,546,399)

28,314,801

EXPENSES

Genaral and adiminstration 4 (16,301,653)

Finanical charge (2,093,945)

(18,395,598)

Profit before tax 9,919,203.29

Profit tax (3,453,721)

PROFIT FOR THE YEAR 6,456,482

G.F.G PLASTIC FACTORY
FINANICAL STATMENTS (continued)
FOR THE YEAR ENDED 7 JULY 2023

ACOUNT RECEIVABELES

Trad debitors 1,635,181

Pripayment –Lcopend 4,164,093
5,799,274

LONE
Bank lone-long term 4,015,600
Bank lone-long term (current maturity) 11,426,965
Bank lon over draft facility 10,741,997
26,184,562

The campany has obtained along term of 15.82 million birr from development bank of ethiopia
in may 2020 that bears interst at the reat 11.50% per annum. Inaddition to this, the campany
has been utillizing an over draft facility to the limit of birr 15 million renwable every year at
interst rate of 16.5% per annum.
G.F.G PLASTIC FACTORY
FINANICAL POSITION
FOR THE YEAR ENDED 7 JULY 2023

ASSETS Notes 2023

ETB
NON-CURRENT ASSETS

Property, plant and equipment 5 32,891,066

32,891,066
CURRENT ASSETS

Inventories 6 13,007,375
Account recivable 7 7,439,093
Cash on hand and at bank 3,807,332
24,253,800
TOTAL ASSETS 57,144,866

EQUITY AND LIABILITES

CAPITAL AND RESERVES

capital 17,000,000.00
Accumulated profit & loss 10,506,584.00
27,506,584.00
NON CURRENT LIABILITY

loan (long- term) 4,015,600.00

4,015,600.00
CURRENT LIABILITY

Current maturity of long term loan 11,426,965.00

Profit tax payable 3,453,721.00
Bank OD 10,741,997.00

Total liability 25,622,683.00

TOTAL EQUITY AND LIABILITIES 57,144,866.00
ASHENAFI WEGAYEHU TEKLE ( G.F.G PLASTIC FACTORY)
STATMENTS OF CHANGES EQUITY
FOR THE YEAR ENDED 2023

Regstered Accumulated
capital profit Total
ETB ETB ETB

At 8 July 2021 10,000,000

Opening balance adjustment - (1,038,478) (1,038,478)

Profit for the year - 6,765,372 6,765,372

At 7 July 2022 10,000,000 5,726,894 15,726,894

At 8 July 2022 10,000,000 5,726,894 12,726,894

Additional Capital 7,000,000 - 7,000,000

Opening balance adjustment - (1,685,792) (1,685,792)

Profit for the year - 6,465,482 6,465,482

At 7 July 2023 17,000,000 10,506,584 24,506,584

G.F.G PLASTIC FACTORY
NOTES TO THE STATMENTS OF CASH FLOW
FOR THE YEAR ENDED 2023

Currency ETB

Cash flows from operating acitivites

Profit befor interest & tax 13,179,535.75

Depreciation 3,317,681.00

Amortization 0.00

(increase)decrease in inventories (2,524,243.52)

(increase)decrease in tread debitors& perpayment (10,033.401.01)

(increase)decrease in tread creditors 16,856,422.00

Profit tax paid 0.00

Net cash out flow(in flow) from operating acitivites 20,795,994.22

Cash flows from operating acitivites

Acquisition of lease hold land 0.00

Acquisition of properity,plant and equipment 0.00

Net cash out flow(used in) from operating acitivites 0.00

Cash flows from finanicing acitivites

Bank lone recived 7,583,432.00

Interst paid (2,093,944,58)

Bank lone payment (1,920,648.14)

Owner,s invest ment/(drawings) 0.00

Net Cash used in from finanicing acitivites 3,568,839.28

Net(decrease) increase in cash and cash equivalent 24,364,833.50

cash and cash equivalent ,beginning of the year 2,182,343.00

cash and cash equivalent , end of the year 26,547,176.50
cash and bank balances consists of

cash on hand 3,187,332.20

cash in bank 620,000.00

3,807,332.20